Bitcoin price reclaims $120K, targets new all-time highs; ZEC leads altcoins

Bitcoin price returned above $120,000 once again as the crypto industry celebrated the first week of the sector’s most historically profitable quarter amidst a supportive macro environment.

Risk-on sentiment was reflected in gains across the entire sector as the total crypto market cap surged more than 11 percent, moving just shy of its all-time peak around $4.25 trillion. 

Traders viewed the rebound as a strong signal that confidence is returning after a turbulent September.

In line with this fresh momentum, the crypto fear and greed index pushed into the upper bounds of the Greed territory at 63, recovering sharply from lows of 28 seen only a week earlier. 

The sudden shift in sentiment highlighted how quickly investors were willing to rotate back into risk assets once the market showed signs of strength.

This sharp turnaround came after several weeks of muted price action and directionless trading that had left many participants cautious. 

The return of strong buying interest suggests that both institutional players and retail traders are positioning for potential upside through the final stretch of the year.

Most of the major altcoins erased the prior week’s losses, with profits visible across the board.

Why is Bitcoin price going up today?

Bitcoin rallied to a multi-week high of $121,044 today, just shy of entering price discovery beyond its previous all-time high of $124,128.

A mix of supportive macro factors, institutional flows, and renewed retail participation has triggered this week’s rally.

Firstly, the United States entered a partial government shutdown yesterday, which has delayed crucial economic reports such as the September jobs data. 

Early labor indicators have already signaled weakness, and with the absence of new official figures, traders are leaning toward expectations of a Federal Reserve rate cut at the Oct. 29 policy meeting. 

Futures markets now price in a near-certain 25 basis point reduction, a move that has pressured the dollar lower and driven investors into risk assets.

Bitcoin, often seen both as a hedge against policy uncertainty and as a high beta proxy for risk appetite, has benefited directly. 

The dollar slipped by 0.5%, which was enough to draw capital flows back into crypto alongside equities. 

Shutdown periods in the past have tended to support stock markets, and the same dynamic is now visible across the digital assets market.

Spot exchange-traded funds are playing an increasingly important role in the rally.

According to SoSoValue, crypto ETFs absorbed $934 million in net inflows on Oct. 2 alone, with Bitcoin products taking in $627 million and Ethereum funds capturing $307 million. For Bitcoin, it marked the fourth consecutive day of net inflows.

At the same time, stablecoin liquidity has expanded with Tether minting $2 billion in new USDT and Circle pushing further integration of USDC and EURC across European markets. This injection of liquidity is adding fuel to the rally.

October’s reputation as a historically strong month for Bitcoin is also playing into sentiment.

Average returns over the past decade have ranged between 20 and 30 %, and this year’s performance so far is tracking closely with that record. 

While a stronger-than-expected jobs report later this month could complicate the rate cut narrative and weigh on prices, analysts argue that the combination of ETF inflows, seasonal strength, and rising institutional adoption has set the stage for the market to move toward a $5 trillion valuation before year-end, led by Bitcoin.

Confidence in Bitcoin’s trajectory is now spilling over to Wall Street, where banks and hedge funds are publishing higher projections for the bellwether crypto.

JPMorgan raised its year-end target for Bitcoin to $165,000, while Citi set a projection of $132,000 and Pantera Capital suggested $150,000 if ETF demand continues at the present pace. 

How high can Bitcoin price go?

When writing this report, Bitcoin was already trading close to all-time high prices, and traders are all but certain that price discovery is imminent.

A lot has changed on Bitcoin’s liquidity heatmap over the past week, with strong support areas now visible around the $115,000 to $117,000 zone. 

The heatmap shows that large clusters of short liquidations were triggered during the climb, and this cascade of liquidations created a clean path higher, removing much of the resistance that had capped prices in September.

At current levels, the chart highlights significant liquidity stacked above $122,000 and extending toward the prior all-time high at $124,000. 

These pockets suggest that if Bitcoin manages to push through the immediate resistance near $121,500, another wave of liquidations could accelerate the move into fresh price discovery. 

Traders often view these liquidity zones as magnets for price, and the present setup points to a market where the path of least resistance is tilted upward.

What stands out in the heatmap is how consistently higher support has been forming as the rally unfolded. 

Each dip has been met with strong bids, which have absorbed selling pressure quickly and prevented deeper pullbacks.

This staircase pattern of support is usually a hallmark of sustained institutional buying and speaks to the conviction behind the latest move.

If Bitcoin clears the $124,000 barrier, analysts believe the next target could quickly stretch into the $130,000 to $135,000 range as liquidity thins out above current levels. 

While some caution that a hotter-than-expected jobs report could temper rate cut bets later this month, the liquidation landscape suggests that the market is heavily skewed toward further upside in the short term.

Bitcoin’s price was showing a lot of strength, especially as it successfully retested the $120k support level, according to crypto analyst Rekt Capital. See below.